Vertical Farming Market Dynamics and Analysis by 2031
The vertical farming market size is projected to reach US$ 29,782.53 million by 2031 from US$ 9,936.39 million in 2023. The market is expected to register a CAGR of 14.7% during 2023–2031. The growing demand for organic foods and growing emphasis on precision farming are likely to remain a key trend in the market.
Vertical Farming Market Analysis
The growing population and consumer awareness of healthy food are acting as a major driver for vertical farming. The rising concern towards smart and precision farming is also positively influencing the vertical farming market globally. Lack of awareness and high cost in maintenance are some of the reasons that might hinder the growth of the market. However, growing government initiatives towards smart agriculture techniques are projected to drive the growth of vertical farming over the forecast period.
Vertical Farming Market Overview
Vertical farming is a process of growing or stacking crops vertically. The complete process is operated in controlled environments utilizing methods such as hydroponics, aeroponics, and aquaponics. The process helps in cultivating crops in a much lesser amount of water than conventional farming techniques. Apart from that vertical farming also reduces the requirement of pesticides and other toxic pesticides to grow crops. The expanding urbanization and growing population are boosting the food requirements which is acting as a driver for the market. Pharmaceutical companies are also focusing on indoor vertical farming to grow biomedical plants for medicines, which is also one of the major positive trends in the market worldwide.
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Vertical Farming Market: Strategic Insights
Market Size Value in US$ 4,300.2 million in 2021 Market Size Value by US$ 19,864.8 million by 2028 Growth rate CAGR of 24.4% from 2021-2028 Forecast Period 2021-2028 Base Year 2021
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Vertical Farming Market: Strategic Insights
| Market Size Value in | US$ 4,300.2 million in 2021 |
| Market Size Value by | US$ 19,864.8 million by 2028 |
| Growth rate | CAGR of 24.4% from 2021-2028 |
| Forecast Period | 2021-2028 |
| Base Year | 2021 |
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Vertical Farming Market Drivers and Opportunities
Rise in Popularity of Organic Food to Favor Market
The growing health consciousness and inclination towards healthy food products are acting as major drivers for the vertical farming market. Consumers prefer and show interest in consuming organically grown crops such as fruits, vegetables, and grains. Increasing health awareness is one of the prime reasons behind the growing consumer demand for food products without any harmful artificial substances or chemicals. Rising health hazards related to the consumption of chemically treated crops or vegetables are acting as a major driver for organic food, which is driving the demand for vertical farming. The growing demand for unconventional and organically grown food products throughout the year is also positively influencing the market globally.
Artificial Intelligence and Robotics to Transform Vertical Farmings
The growing technological advancement in terms of process automation and integration of robotic technology is anticipated to provide high opportunities for the vertical farming market. The agricultural farms operating in the market are more focused on research and development activities to introduce artificial intelligence technology to advance the maintenance and care of plants in a more organized and streamlined way. In addition, some companies are also concentrating on introducing robots in the vertical farming industry to reduce human intervention and increase time efficiency, which is also projected to drive the growth of the vertical farming market globally.
Vertical Farming Market Report Segmentation Analysis
Key segments that contributed to the derivation of the vertical farming market analysis are product growth mechanisms and component.
- Based on the growth mechanism, the market is divided into hydroponics, aeroponics, and aquaponics. The Hydroponics segment held a larger market share in 2023.
- By component, the market is segmented lighting, sensor, climate control, irrigation component, building material, and others. The lighting segment held a significant share of the market in 2023.
Vertical Farming Market Share Analysis by Geography
The geographic scope of the vertical farming market report is mainly divided into five regions: North America, Asia Pacific, Europe, Middle East & Africa, and South & Central America.
North America is leading the market. High investment in advanced technologies for boosting food production and increasing the availability of seasonal fruits and vegetables throughout the year is driving the demand for vertical farming in the North America region. Growing demand for unconventional and organically grown fruits, grains, and vegetables is also boosting the evolution of the market in North America. Temperature variations and changing weather conditions are major factors hampering the growth of vegetables and fruits in various countries. The nations with extreme temperature conditions are fueling the demand for vertical farming in North America. Space constraint is also met by the stacked layered farming, which is one of the major reasons behind the rising adoption of vertical farming techniques. The growing adoption of automation and increasing robotic technology in the farming sector is also having a positive influence on the vertical farming market in the region. The US is leading the vertical farming market in North America.
Vertical Farming Market Report Scope
Vertical Farming Market News and Recent Developments
The vertical farming market is evaluated by gathering qualitative and quantitative data post primary and secondary research, which includes important corporate publications, association data, and databases. A few of the developments in the Vertical Farming market are listed below:
- Eden Green Technology secured US$12 million for Its vertical farm-greenhouse combo. (Source: Eden Green Technology, Press Release, March 2024)
- Elevate Farms Inc. announced the expansion of its vertically-farmed leafy greens footprint in both the US and Europe. (Source: Elevate Farms Inc., Press Release, February 2024)
Vertical Farming Market Report Coverage and Deliverables
The “Vertical Farming Market Size and Forecast (2021–2031)” report provides a detailed analysis of the market covering below areas:
- Vertical farming market size and forecast at global, regional, and country levels for all the key market segments covered under the scope
- Vertical farming market trends as well as market dynamics such as drivers, restraints, and key opportunities
- Detailed PEST and SWOT analysis
- Vertical Farming market analysis covering key market trends, global and regional framework, major players, regulations, and recent market developments
- Industry landscape and competition analysis covering market concentration, heat map analysis, prominent players, and recent developments for the vertical farming market
- Detailed company profiles
Report Coverage
Revenue forecast, Company Analysis, Industry landscape, Growth factors, and Trends
Segment Covered
Growth Mechanism and Component
Regional Scope
North America, Europe, Asia Pacific, Middle East & Africa, South & Central America
Country Scope
Argentina, Australia, Brazil, Canada, China, France, Germany, India, Italy, Japan, Mexico, Russian Federation, Saudi Arabia, South Africa, South Korea, United Arab Emirates, United Kingdom, United States
Frequently Asked Questions
North America dominated the vertical farming market in 2023.
The rapid developments in precision farming technologies are the future trend of the vertical farming market.
Eden Green Technology, iFarm, OSRAM GmbH, Elevate Farms Inc., Plenty Unlimited Inc., Sky Greens, Vertical Farm Systems, Square Mile Farms, Freight Farms, and AeroFarms are some of the leading players in the market.
US$ 29,782.53 million estimated value of the vertical farming market by 2031.
14.7% is the expected CAGR of the vertical farming market.
The Insight Partners performs research in 4 major stages: Data Collection & Secondary Research, Primary Research, Data Analysis and Data Triangulation & Final Review.
- Data Collection and Secondary Research:
As a market research and consulting firm operating from a decade, we have published many reports and advised several clients across the globe. First step for any study will start with an assessment of currently available data and insights from existing reports. Further, historical and current market information is collected from Investor Presentations, Annual Reports, SEC Filings, etc., and other information related to company’s performance and market positioning are gathered from Paid Databases (Factiva, Hoovers, and Reuters) and various other publications available in public domain.
Several associations trade associates, technical forums, institutes, societies and organizations are accessed to gain technical as well as market related insights through their publications such as research papers, blogs and press releases related to the studies are referred to get cues about the market. Further, white papers, journals, magazines, and other news articles published in the last 3 years are scrutinized and analyzed to understand the current market trends.
- Primary Research:
The primarily interview analysis comprise of data obtained from industry participants interview and answers to survey questions gathered by in-house primary team.
For primary research, interviews are conducted with industry experts/CEOs/Marketing Managers/Sales Managers/VPs/Subject Matter Experts from both demand and supply side to get a 360-degree view of the market. The primary team conducts several interviews based on the complexity of the markets to understand the various market trends and dynamics which makes research more credible and precise.
A typical research interview fulfils the following functions:
- Provides first-hand information on the market size, market trends, growth trends, competitive landscape, and outlook
- Validates and strengthens in-house secondary research findings
- Develops the analysis team’s expertise and market understanding
Primary research involves email interactions and telephone interviews for each market, category, segment, and sub-segment across geographies. The participants who typically take part in such a process include, but are not limited to:
- Industry participants: VPs, business development managers, market intelligence managers and national sales managers
- Outside experts: Valuation experts, research analysts and key opinion leaders specializing in the electronics and semiconductor industry.
Below is the breakup of our primary respondents by company, designation, and region:
Once we receive the confirmation from primary research sources or primary respondents, we finalize the base year market estimation and forecast the data as per the macroeconomic and microeconomic factors assessed during data collection.
- Data Analysis:
Once data is validated through both secondary as well as primary respondents, we finalize the market estimations by hypothesis formulation and factor analysis at regional and country level.
- 3.1 Macro-Economic Factor Analysis:
We analyse macroeconomic indicators such the gross domestic product (GDP), increase in the demand for goods and services across industries, technological advancement, regional economic growth, governmental policies, the influence of COVID-19, PEST analysis, and other aspects. This analysis aids in setting benchmarks for various nations/regions and approximating market splits. Additionally, the general trend of the aforementioned components aid in determining the market's development possibilities.
- 3.2 Country Level Data:
Various factors that are especially aligned to the country are taken into account to determine the market size for a certain area and country, including the presence of vendors, such as headquarters and offices, the country's GDP, demand patterns, and industry growth. To comprehend the market dynamics for the nation, a number of growth variables, inhibitors, application areas, and current market trends are researched. The aforementioned elements aid in determining the country's overall market's growth potential.
- 3.3 Company Profile:
The “Table of Contents” is formulated by listing and analyzing more than 25 - 30 companies operating in the market ecosystem across geographies. However, we profile only 10 companies as a standard practice in our syndicate reports. These 10 companies comprise leading, emerging, and regional players. Nonetheless, our analysis is not restricted to the 10 listed companies, we also analyze other companies present in the market to develop a holistic view and understand the prevailing trends. The “Company Profiles” section in the report covers key facts, business description, products & services, financial information, SWOT analysis, and key developments. The financial information presented is extracted from the annual reports and official documents of the publicly listed companies. Upon collecting the information for the sections of respective companies, we verify them via various primary sources and then compile the data in respective company profiles. The company level information helps us in deriving the base number as well as in forecasting the market size.
- 3.4 Developing Base Number:
Aggregation of sales statistics (2020-2022) and macro-economic factor, and other secondary and primary research insights are utilized to arrive at base number and related market shares for 2022. The data gaps are identified in this step and relevant market data is analyzed, collected from paid primary interviews or databases. On finalizing the base year market size, forecasts are developed on the basis of macro-economic, industry and market growth factors and company level analysis.
- Data Triangulation and Final Review:
The market findings and base year market size calculations are validated from supply as well as demand side. Demand side validations are based on macro-economic factor analysis and benchmarks for respective regions and countries. In case of supply side validations, revenues of major companies are estimated (in case not available) based on industry benchmark, approximate number of employees, product portfolio, and primary interviews revenues are gathered. Further revenue from target product/service segment is assessed to avoid overshooting of market statistics. In case of heavy deviations between supply and demand side values, all thes steps are repeated to achieve synchronization.
We follow an iterative model, wherein we share our research findings with Subject Matter Experts (SME’s) and Key Opinion Leaders (KOLs) until consensus view of the market is not formulated – this model negates any drastic deviation in the opinions of experts. Only validated and universally acceptable research findings are quoted in our reports.
We have important check points that we use to validate our research findings – which we call – data triangulation, where we validate the information, we generate from secondary sources with primary interviews and then we re-validate with our internal data bases and Subject matter experts. This comprehensive model enables us to deliver high quality, reliable data in shortest possible time.
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